Instructions

ZOOM IN by clicking on the page. A slider will appear, allowing you to adjust your zoom level. Return to the original size by clicking on the page again.

MOVE the page around when zoomed in by dragging it.

ADJUST the zoom using the slider on the top right.

ZOOM OUT by clicking on the zoomed-in page.

SEARCH by entering text in the search field and click on "In This Issue" or "All Issues" to search the current issue or the archive of back issues
respectively.
.

PRINT by clicking on thumbnails to select pages, and then press the
print button.

SHARE this publication and page.

ROTATE PAGE allows you to turn pages 90 degrees clockwise or counterclockwise.Click on the page to return to the original orientation. To zoom in on a rotated page, return the page to its original orientation, zoom in, and
then rotate it again.

CONTENTS displays a table of sections with thumbnails and descriptions.

ALL PAGES displays thumbnails of every page in the issue. Click on
a page to jump.

FEBRUARY 2015 • WEEK FOUR www.guardian.co.tt BUSINESS GUARDIAN
COMMENTARY | BG15
Agood way to gauge the
business climate of the
energy services sector is
to examine the level of
confidence that energy
service contractors have
in the activity of the sec-
tor. The Energy Cham-
ber s energy services sectors survey (ESSS) is a
quarterly survey of energy service contractor
which allows for such an assessment.
The ESSS attempts to map the performance
and optimism of our energy service sector mem-
bers, providing data on their business confidence
and on some of the phenomena which impact
on their operations and business prospects. The
survey draws on information from survey par-
ticipants about the level of confidence of service
contractors, their plans for investment and expan-
sion, employment and training.
Levels of optimism
Data collected from the ESSS for Q4 2014
shows that approximately 19 per cent of the
respondents claimed to be more optimistic than
they were three months prior, while 15 per cent
indicated that there was no change in their level
of optimism for the sector and 66 per cent of
respondents indicated that they were less opti-
mistic. This is a marked dip from the Q3 2014
results in which only 31 per cent of respondents
were less optimistic than three months prior.
For those who indicated that they were less opti-
mistic in Q4 2014 they were further asked why
and 94 per cent of them indicated that it was
because of the worsening of the overall economic
environment.
Value of business
When asked about the value of their business
in Q4 2014, 61 per cent of respondents indicated
that it was normal, 35 per cent indicated that
it was below normal and only 4 per cent of
respondents indicated that it was above normal.
When asked about their expectations for the
next quarter (Q1 2015) 19 per cent of respondents
indicated that they expected the value of their
business to increase while 19 per cent indicated
that they expected their value to be normal and
62 per cent indicated that they expected the
value of their business to be below normal. For
those who expected the value of their business
to be below normal the major reason cited was
a decrease in average selling prices.
Volume of business
When asked about the volume of their business
in Q4 2014, 46 per cent indicated that it was
normal, 42 per cent indicated that it was below
normal and only 12 per cent of respondents indi-
cated that it was above normal. When asked
about the expected volume of business for the
next quarter (Q1 2015) 15 per cent of respondents
indicated that they expected the volume of busi-
ness to increase, 23 per cent indicated that they
expected the volume of their business to stay
normal while 62 per cent of respondents expected
the volume of their business to be below normal
(Figure 1). For those respondents who expected
their volume of business to be below normal in
the next quarter 69 per cent indicated that it
was due to the decrease in demand for servic-
es.
Employment
When asked about employment in the sector
for Q4 2014, 62 per cent of respondents indicated
that there was no change in the total number
of employees, 21 per cent of respondents indicated
that there was an increase in the total number
of persons employed and 17 per cent of respon-
dents indicated that the total number of persons
employed decreased. This trend may change
since when asked about their expectations for
the next quarter 29 per cent of respondents indi-
cated that they expected the total number of
employees to increase while 21 per cent indicated
that the total number of their employees will
decrease and 50 per cent indicated that there
would be no change in employment number.
Interactions with the membership indicate
that service companies operating out of San Fer-
nando have found that local activity seems to
be holding and even though some projects have
been dropped, others have come on-stream.
Other companies also pointed to the fact that
maintenance and routine operations type con-
tracts have not changed despite the energy prices.
It appears that projects which are advanced in
their implementation and have momentum will
continue to be executed. The projects which are
still in development are questionable because
what was feasible at high energy prices may not
be so at today s prices. Service companies based
Mayaro also shared similar concerns about falling
oil prices and the impact this would have on
upcoming projects and employment in the sec-
tor.
Capital expenditure
In the next 12 months the majority of capital
spending within the energy services sector will
be on methods to increase efficiency and exploit
new technology. When asked to indicate what
factors would limit their capital expenditure in
the next 12 months, 79 per cent of respondents
indicated it would be due to the uncertainty of
demand or uncertainty of business prospects.
Conclusion
The energy services sector remains one of the
most competitive sectors of the T&T economy
and represents one of the best opportunities for
sustainable development. It is a source of local
content as well as an important competitive
pillar for T&T to sustain its long-term growth
through services export.
Currently, the energy services sector is expe-
riencing a bit of uncertainty because of the failing
oil prices that marked the last quarter. While
projects that are already on stream seem to not
have been affected by the falling oil prices, com-
panies are worried about new projects coming
on stream. The uncertainty in demand in T&T
for their services has been cited as one of the
major factors affecting the volume of business
in the energy services sector.
Based on this, it is important for local energy
services companies to seek international markets
for their goods and services. The Energy Chamber
continues to work with member companies in
assisting them to explore opportunities in inter-
national markets and will be leading our third
trade mission to Ghana from March 15 to 22,
2015.
Interested members are asked to contact the
Energy Chamber s Executive Office at 6-ENERGY
for further details on the trade mission.
Energy Chamber
www.energy.tt
Energy services sector survey: Q4 2014
Companies need to seek
out foreign markets